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02-0271 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 ORDINANCE NO. O~k-~5~['] AN ORDINANCE OF THE CITY OF BOYNTON BEACH, FLORIDA AMENDING CHAPTER 18, ARTICLE 11, DIVISION 4 OF THE CODE OF ORDINANCES OF THE CITY OF BOYNTON BEACH, FLORIDA TO AMEND THE PRE-RETIREMENT DEATH BENEFIT OF THE GENERAL EMPLOYEES' PENSION PLAN; SPECIFICALLY AMENDING SECTION 18-115, ENTITLED "DEATH BEFORE RETIREMENT DATE", TO PROVIDE A METHOD FOR CHOSING AND CALCULATING A SURVIVOR BENEFIT; PROVIDING FOR CODIFICATION; PROVIDING FOR CONFLICTS; PROVIDING FOR SEVERABILITY; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, on January 2, 2001, the City Commission of the City of Boynton Beach, Florida adopted Ordinance No. 00-75 providing enhanced benefits to the members of the General Employees' Pension Plan ("Plan"); and WHEREAS, the General Employees' Pension Board of Trustees ("Board") has determined the necessity to amend the terms of the Pre-Retirement Death Benefit provided in §18-115 of the City of Boynton Beach Code of Ordinances in order to clarify the intentions of the method of applying this benefit within the Plan; and WHEREAS, the Board has approved and recommended to the City Commission the adoption of this amendment to the Plan as more particularly set forth hereinbelow; and WHEREAS, it is the desire of the City Commission to amend the Plan as recommended by the Board; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF BOYNTON BEACH, FLORIDA, THAT: Page 1 of 5 JFK: 11-19-2001 1 2-19-2002 I 5-25-2002 S:\CA\OrdinancesLPension\General Employees Pension - death benefit 1 2 3 4 5 6 7 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 ORDINANCE NO. O~ - O&'7 The foregoing "WHEREAS" clauses are hereby certified as All exhibits Section 1. being true and correct and are incorporated herein by this reference. attached hereto are hereby incorporated herein. Section 2. The City Commission of the City of Boynton Beach, Florida hereby amends Chapter 18, Article II, Division 4, Section 18-115 of the City Code of Ordinance of the City of Boynton Beach, entitled "Death Before Retirement Date", as follows: Section 18-115. Death before retirement date. (a) Prior to January 2, 2000, in the event of death of an employee prior to the receipt by such employee of any of the benefits under the provisions of this article, then the total amount of contributions by said employee to the fund, up to the time of his death, shall be paid to the beneficiary of the deceased employee, together with interest thereon at the rate of three percent (3%) per annum to January 1, 1977 and five percent (5%) thereafter, computed in the manner provided in section 18-117, unless the employee has reached normal retirement age and the retirement annuity option provided in section 18-118 has been elected by the employee, in which case pension payments will be made as though the employee had retired on the date before he died. (b) On or after January 2, 2000, in the event of the death of an employee prior to the receipt by such employee of any of the benefits under the provisions of this article, then the beneficiary of the deceased employee who was not vested, may receive the total amount of contributions by said employee to the fired, up to the time of his or her death, together with the interest thereon at the rate of five percent (5%) per annum thereafter, computed in the manner provided in section 18-117. The beneficiary of an employee who became vested prior to their death may receive the pension benefit earned by the employee as though the employee had retired on the date before (s)he died payable either as an immediate lump sum pa~nent or as a monthly survivor benefit for the remainder of the survivor's life. (1) The immediate lump sum pawnent is equal to the ~eater of the employee's contributions together with the interest thereon at the rate of five percent (5%) per annum or the lump sum value of the actuarial calculation of the employees' accrued pension payable at the earliest date the employee could have retired. Page 2 of 5 JFK: 11-19-2001 12-19-2002 ] 5-25-2002 S:\CA\Ordinances\Pension\Gencral Employees Pension - death benefit doc ~ea*& beneSt.~oc 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 ORDINANCE NO. (2) The monthly survivor benefit would be the actuarial calculation of the employee's accrued pension starting at the earliest date the member could have retired. If the beneficiary's age is more than fifteen (15) years less than the employee's age at the time of death, then the monthly benefit will be reduced as though the beneficiary wa,q fifteen (15) years younger than the employee. The monthly survivor benefit is payable at the earliest date the employee could have retired. (3) If the earliest date that the employee could have retired is before the normal retirement date, then the accrued death benefit will be subject to the early retirement penalty of three percent (3%) for each year prior to what would have been the employee's normal retirement date. (4) If the beneficiary selects to receive the monthly survivor benefit but predeceases the date such payments commence, the employee's estate shall receive a refund of the employee's contribution~ together with the interest thereon at the rate of five percent (5%) per annum. Section 3. It is the intention of the City Commission of the City of Boynton Beach that the prOvisions of this Ordinance shall become and be made a part of the Code of Ordinances of the City of Boynton Beach, Florida. The Sections of this ordinance may be renumbered, re-lettered and the word "Ordinance" may be changed to "Section", "Article" or such other word or phrase in order to accomplish such intention. Section 4. All Ordinances or parts of Ordinances, Resolutions or parts of Resolutions in conflict herewith be and the same are hereby repealed to the extent of such conflict. Section 5. If any clause, section, or other part or application of this Ordinance shall be held by any court of competent jurisdiction to be unconstitutional or invalid, such unconstitutional or invalid part or application shall be considered as Page 3 of 5 JFK: 11-19-2001 12-19-2002 I 5-25-2002 S:\CA\Ordinances\Pension\General Employees Pension - - u.x death benefit, doc death benefit, doc .................................... 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Section 6. occurred: (a) ORDINANCE NO. O&-0o17 eliminated and so not effecting the validity of the remaining portions or applications remaining in full force and effect. This Ordinance shall become effective when the following have the City Commission has received and has accepted a report establishing the actuarial soundness of these amendments; (b) when a collective bargaining agreement ratifying the foregoing changes to pension benefits has been ratified by the City Commission and the General Employees' Pension Board of Trustees, or their successor organization; and (c) a copy of this Ordinance is transmitted to the State of Florida Division of Retirement. Upon satisfaction of all of the above requirements, then in that event, the terms and provisions of this Ordinance shall become effective and retroactive to the effective date of Ordinance No. 00-7{; on ol -olt-e,I. THE REMAINDER OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK JFK: 11-19-2001 12-19-2002 I 5-25-2002 Page 4 of 5 S:\CA\Ordinances\Pension\General Employees Pension - ~$.x .... dea*~ benefit.~,cc death benefit.doc ORDINANCE NO. ~5,~ - 01~,"/ FIRST READING this t~ day of SECOND, FINAL READING and PASSAGE ., 2002. ,2002. this day of CITY OF BOYNTON BEACH, ATTEST: Commissioner ' Commissioner ...... ' Page 5 of 5 JFK: 11-19-2001 12-19-2002 I 5-25-2002